Merkel Is Seizing Her Chance to Revolutionize Germany’s Economy

The pandemic has revived a radical plan to transform the country into a state capitalist with echoes of France and China.

A pedestrian wearing a protective face mask looks inside a closed store during coronavirus lockdown in Munich, on April 17.
A pedestrian wearing a protective face mask looks inside a closed store during coronavirus lockdown in Munich, on April 17.Photographer: Michaela Handrek-Rehle/Bloomberg

On a gloomy Friday in March, with the devastation of the coronavirus becoming clear, senior officials in Chancellor Angela Merkel’s government realized that extraordinary measures were needed to shore up Europe’s largest economy.

At breakneck speed, aides based at the Economy Ministry’s former Prussian estate on the Spree river in Berlin pulled together a rescue program totaling 600 billion euros ($660 billion) to prevent a collapse.